Company Confidential


Greetings!  



Last week, Andrés Gluski, AES President and CEO, and Tom O'Flynn, AES EVP and CFO, hosted our Second Quarter 2016 Financial Results Conference Call for investors and analysts.  We reported second quarter 2016 Proportional Free Cash Flow of US $417M and Consolidated Net Cash Provided by Operating Activities of US $723M. 
  
Click here to read the press release and click here to listen to the earnings call.
                                      
AES Communications
LEADERSHIP MATTERS
A Message from COO Bernerd DaSantos:
Tragic Event and fatality at CTSN in Argentina


Every day, our people come to work and put their lives on the line. Putting safety first is our first Value because we value you and want you to return to the people you care most about at the end of each and every work day. Today, it is with great sadness that I must inform you an AES contractor will never have the chance to go home.
 
The incident happened in July. A contracted operator at our CTSN facility in Argentina, part of our Andes SBU, was working to free wet coal stuck in a coal pipe by banging on the pipe. An explosion happened inside the coal pipe. That explosion caused hot gases and burning coal to escape through a site glass on the pipe, causing burns to the operator's upper body and upper respiratory tract. The operator was hospitalized in critical condition for over a month before passing away late last week. Our thoughts are with the person's family and teammates.  
PUTTING SAFETY FIRST
Stopping work for our first Value, Safety
Today, we stopped work to stand up for safety by having a Safety Stand Down at all of our locations. To reinforce the importance of Always being On for Safety, our leadership led these events across our businesses. AES CEO Andrés Gluski visited Warrior Run in the US SBU, COO Bernerd Da Santos was at CTSN in Argentina, part of the Andes SBU, and CHRO Tish Mendoza and EVP and General Counsel Brian Miller hosted the event in Arlington.  The Safety Stand Down reminded each how we can refocus on safety and review our safety, beliefs and procedures. The actions we each take can make the difference if we are able to go home safely to their families at the end of each work day or not. Butch Haganman, an AES person at IPL in the US SBU and our most recent winner of the Safety Excellence Award, shared his personal story about the importance of being Always On for Safety. Click here to hear his story. If you have any questions about safety, please talk to your local EH&S lead.
BECOMING AN ENERGY STAR
Global Sourcing Opportunities work stream: Knowledge sharing through SAP Ariba


Being an energy star means improving the way we work and how we do things. An energy star also means evaluating our processes to be more efficient. The Acceleration of Global Sourcing Opportunities work stream is aimed at helping us do just that. One critical component of this work stream is the implementation of SAP Ariba, an online e-Sourcing tool that provides consistency and visibility to our sourcing processes. Ariba enables us to implement our e-sourcing strategy by making significant improvements in supplier data management, sourcing and contracting.
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AES Philippines recognized at the 6th Asia Best CSR Practices Award


AES Philippines, part of the Asia SBU, received recognition during the 6th Asia Best Corporate Social Responsibility Practices Awards in Singapore last week. The business' 2013-2014 sustainability report was recognized with the Best Sustainability Report award. AES Academy, the country's capability development program for its electric cooperative customers, received the Best CSR Integrated Business Award while the Masinloc Training Facility was given the Best Community Development and Best CSR Impact Initiative awards. 
 
BEHIND THE MW
AES Eletropaulo's Santo André center built sustainably
AES Eletropaulo's newly opened meeting and delivery center in Santo André had sustainability in mind when it was constructed. As a result, we were able to achieve the following benefits:



1.   Faster completion of the project with a skilled workforce and previously       
      manufactured materials;
2.   Less waste compared to conventional construction methodology, making it a    
      cleaner and safer work site for AES people; 
3.   Lower energy consumption since the walls of the base and the roof are thermo 
      acoustic which means less air-conditioning system and natural lighting is used 
      in locker rooms and offices; and
4.   Reduced water consumption since the center has a rainwater collection system
      and reservoir.


The Santo André center is a safe, sustainable and working environment for our people that we can run in a cost effective way and best serve our local customers.

ALWAYS ON FOR SAFETY
Raul Castellano is Always On for Safety


Raul is a Mechanic with the Predictive Maintenance at TEG-TEP in Mexico, part of the MCAC SBU. With TEGTEP for more than six years, Raul has demonstrated his commitment to safety in numerous ways. He uses his Stop Work Authority without hesitation when needed and always looks at ways to improve the processes needed to work safely. He is also an active member of the Emergency Response Brigade and has participated in outages at AES Puerto Rico.


While working as a liason officer between AES and one of its contractors in February 2016, he was recognized for his outstanding performance during two outages at TEG-TEP.  Raul worked with the contractors to make sure the outage was implemented safely and successfully, and developed techniques to improve Contractor Management. 
Thank you, Raul, for your being Always On for Safety and for helping our contractors be safe and embrace AES' safety culture.
Company confidential. Do not distribute outside AES. © Copyright AES Corporation 2016


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